Introduction and About

- Uttarakhand has set a historic precedent by becoming the first Indian state to attribute monetary values to its abundant and diverse natural resources. Termed as the "Gross Environment Product (GEP)", this pioneering initiative includes air, water, forest, and soil among its gamut of valued ecosystems. 

Why in the News?

- This new environmental-economical initiative places Uttarakhand in the limelight for recognizing and integrating the value of its ecosystem services and natural resources into sustainable economic planning. 

Understanding the Gross Environment Product

- The Gross Environment Product (GEP) is a part of the Green Gross Domestic Product (Green GDP). It is calculated as the aggregate value of ecosystem services and products that contribute significantly to human welfare and sustainable socio-economic development. This includes various essential ecosystem services such as provisioning, regulating, and cultural services. 

- The Green GDP, on the other hand, is an escalation over the standard GDP. It accounts for environmental costs like biodiversity losses and climate change impacts, along with conventional economic growth measurements.

- The GEP Index provides for a distinct compilation of man-made environmental conservation efforts, like Amrit Sarovars, separate from natural processes such as rainfall.

- The inaugural GEP index offers comparative data from 2020-2022. It shows an encouraging increase of 0.9% in environmental products.

GK and Significance

- This is the first time in India where a state has successfully integrated economic planning with ecological conservation by attributing monetary units to natural resources.

- The move marks a significant shift from the traditional measurement of economic success solely based on GDP, taking a more holistic approach by factoring in environmental sustainability.

- The GEP will serve as an essential tool for policymakers by providing comprehensive data on the health of the environment and the economic value of maintaining it. 

- Monitoring of environmental changes through GEP might help to design proactive strategies for environmental conservation.

- Finally, this step could inspire other states to follow suit, promoting nationwide environmental sustainability while driving economic growth.

In essence, Uttarakhand’s move to implement the GEP marks an essential stride towards an environmentally conscious future, underlining the potential harmony between economic development and environmental conservation.